Bitcoin Price Limps Along as Misery Index Flashes Buy Signal

Bitcoin prices are staging a tepid comeback after briefly dropping below $8,000 earlier today. As of this writing, the price of one bitcoin token hovered at $9,183, up 0.56% in the last 24 hours. 

Because a riding tide lifts all boats, it's no surprise that 4 of the top 10 most valuable cryptocurrencies by market cap were also buoyed by BTC's quiet elevation. Bitcoin Cash, Eos, BinanceCoin and Nucleusvision also posted price gains during the last 24 hours.

Interestingly, the price of BinanceCoin — the Ethereum platform-based token recently launched by crypto exchange Binance — has spiked more than 23% in the last 24 hours, according to WorldCoinIndex. BNB was trading at $9.89 per token as of this writing.

Binance, which was the target of an attempted hack last week, just announced that it's willing to pay $10 million in bounties for information leading to the arrests of hackers who attack its trading platform. (See more: Binance Offers $10 Million Bounty For Arrest of Crypto Hackers.)

"We can’t simply play defense," the exchange explained. "We need to actively prevent any instances of hacking before they occur, as well as follow through after-the-fact."

Misery Loves Company

Meanwhile, bitcoin's price is sputtering along today on equally erratic trading volume. BTC skeptics may be gloating over its recent price dips, but now may be the best time to buy the original virtual currency, according to one analyst.

The "Bitcoin Misery Index," the brainchild of Fundstrat's Tom Lee, just skidded to a record low. As of last week, the index tanked to 18.8, the lowest it has been since 2011.

Lee said the lower the Bitcoin Misery Index, the better the investment opportunity for investors. "While short-term the low points are a signal of pain, long term, it could be a great entry way into bitcoin," he said. (See more: Bitcoin 'Misery Index' Predicts Price of $20,000 This Year.)

(Source: Fundstrat)

Historically speaking, Lee said the lowest index readings were always followed by stellar price gains. “Think of this index as a way to measure how happy or sad you are owning bitcoin,” Lee said. "When the Bitcoin Misery Index is at ‘misery’ (below 27), bitcoin sees the best 12-month performance."

Of course, no serious investor should make purchasing decisions based on a whimsical index, but stranger things have happened. (See also: Tesla Billionaire Elon Musk Reveals How Much Bitcoin He Owns.)

Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns no cryptocurrencies.